Suez Canal Passage Resumed... "Supply Chain Issues Likely to Take Months to Resolve" (Comprehensive)

"372 Ships Waiting to Pass Canal"... Additional 3-4 Days Needed
Export Container Shortage Worsens..."1 Million Units Delayed"
Egypt "Will Demand Compensation from Shipowners"... Litigation Expected

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Although the grounded vessel blocking the Suez Canal was salvaged and the canal reopened after a week of closure, warnings are emerging that the global supply chain crisis could continue for several months. Hundreds of cargo ships, already delayed in delivery, are converging on ports simultaneously, causing bottlenecks and potentially triggering a chain reaction of logistics disruptions. Concerns are also rising that the shortage of export containers, which began late last year, will worsen.

According to foreign media including the Associated Press on the 29th (local time), the Suez Canal Authority (SCA) of Egypt stated in a press release that "the Ever Given, which was grounded in the canal, has been successfully salvaged and the canal has been reopened," adding, "Currently, 372 vessels are waiting to pass through the canal, and starting today, the canal will be open 24 hours a day to accommodate the waiting ships." The SCA estimated that it will take about 3 to 4 days for all waiting vessels to pass through and for canal traffic to return to normal.

Although the Suez Canal reopened a week after the incident, there are concerns that if hundreds of container ships that were stuck enter ports all at once, unloading operations will be delayed, causing the supply chain issues to expand in a domino effect. Steven Flynn, a professor of international politics at Northeastern University in the U.S., told CNBC in an interview, "It is unprecedented for transportation to be halted on such a large scale for a week, and chain problems such as unloading issues at ports will arise," adding, "It will take at least 60 days for the international logistics system to be organized and restored to normal."

In particular, worries are growing that the shortage of export containers, which has been a problem since late last year, will deepen. According to The Wall Street Journal (WSJ), the Ever Given carried about 18,000 export containers, and considering the daily cargo volume of the Suez Canal, it is estimated that the transportation of over 1 million export containers will be delayed. Since last year, container supply shortages have been continuously raised worldwide as Chinese container manufacturers reduced production days due to factory shutdowns caused by COVID-19 prevention measures.

Who will bear responsibility for this supply chain crisis is also a key issue. According to Russia's Sputnik News on the same day, Mahab Mamish, Egypt’s presidential advisor for port development and the Suez Canal, said in an interview, "The responsibility for the ship grounding lies with the captain of the Ever Given, and compensation and all costs will be charged to the shipowner," sparking a dispute over liability. The Ever Given is operated by the Taiwanese company Evergreen, and the shipowner is the Japanese company Shoei Kisen. With over 400 vessels affected and logistics industry losses estimated at more than $9 billion (approximately 10.2 trillion KRW) in just one day, fierce litigation over compensation is expected to last for years.

This content was produced with the assistance of AI translation services.